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Q7 About the Heckscher-Ohlin Model 10 Points Belgium is a country that produces two goods: cars and beer. There are two factors of production, labor

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Q7 About the Heckscher-Ohlin Model 10 Points Belgium is a country that produces two goods: cars and beer. There are two factors of production, labor and capital, that are mobile across industries. The production function for cars is given by Yo = Ko and the production function in the beer industry is given by YB = LB KB". The total number of workers is L = 100 and the supply of capital is K = 100. Q71 4 Points Provide a relationship between the labor intensity in the car industry (relative use of labor vs capital) and the wage to rental ratio w/r in equilibrium (provide details) Enter your answer here

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